The Bangko Sentral ng Pilipinas (BSP) saw its profits breach P100 billion in the January to April period, as a sharp decline in expenses more than offset a drop in revenue.
The BSP’s net income nearly doubled from the same period last year to P100.9 billion, according to data posted on the central bank’s website.
Broken down, total revenue sagged 12.4 percent year-on-year to P80.6 billion. Interest income, which accounted for the bulk of the BSP’s total revenue, dropped 6 percent to P75.4 billion.
Miscellaneous income-which includes trading gains and losses, fees, penalties and other operating income-plummeted at a faster pace of 54 percent to P5.2 billion.
At the same time, total expenses fell 17.9 percent to P55.6 billion. Interest expenses plunged nearly 43 percent to P26.9 billion, while other expenses declined nearly 39 percent to P28.7 billion.
The central bank also booked a net gain of P75.9 billion from fluctuations in foreign exchange rates on its foreign currency-denominated transactions, almost triple the amount recorded a year earlier.
Amid the stronger profit, the BSP’s total assets edged up 4.3 percent from a year earlier to P7.92 trillion.
International reserves, which accounted for most of the central bank’s assets, rose over 10 percent to P6.4 trillion. The increase was partly offset by declines in domestic securities, loans and advances, and other assets.
Total liabilities, meanwhile, grew 3 percent to P7.5 trillion. This translated to a net worth of P384.4 billion, up 36 percent from a year earlier.
The results came amid the conflict in the Middle East that had sent global oil prices higher, fueling inflation fears and market volatility around the world.
In the Philippines, rising prices have already prompted the central bank to tighten monetary policy after inflation breached its 3 percent target.
The BSP has raised its benchmark interest rate by a cumulative 75 basis points to 5 percent since April, with Governor Eli Remolona Jr. saying policymakers would tighten policy as much as necessary to bring inflation under control.